1. Introduction to branding
A brand to some may be just a simple name, logo or symbol whereas to others it may be a promise, guarantee, reputation or identification. But the most important thing is brands are passages which bring together consumers and marketers closer and bind them together. The product can be copied and competitors can make similar products with similar features; but a brand and its loyalty towards consumers cannot be copied. Strong brands have a separate place for themselves in the minds of the consumers. As consumers always go for high branded products, brand is a feature of a product which can generate a lot of profit.
Branding needs a shift of tactics and thinking on the part of marketing executives. Customer awareness levels are increasing, which makes marketers to rethink about their branding strategies. Successful branding needs a structured approach; with attention to the minor factors which others do not focus their eyes on.
2. What is a brand?
A brand exists in perceptual space and is a perceptual entity which we can become aware through our senses. Brands and branding have number of definitions, because they were subject to continuous review and redefining. A brand can be simply defined as a name, term, sigh, symbol, or design, or else a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competitors [1]. A more universal applicable definition defines a brand as a cluster of functional and emotional values which promises stake holders a particular experience.
The value of the brand can be measured with its ability to gain an exclusive, positive and prominent meaning in the minds of a large number of customers. Brand awareness, perceived quality, confidence, and image are four factors which determine the perceived value of the brand [1].
3. The importance of branding
A brand is the most valuable asset that a company can own. In today’s context branding is the basis upon which products create consumer relationship. Brand is definitely more than just a name or logo. It creates such a lot of intangible value to the companies, which can be proven by statistics.
Assume Coca Cola’s facilities all over the world were burnt overnight, which make their all the physical assets going in to ash. But don’t you think that they are able to start the business again next day morning? They are able to do so due to the value of its most important asset known as the Coca Cola brand. Even though it is intangible Coca Cola’s brand was estimated to be worth $67.5 billion in 2005 [2]. That is the importance of branding.
References
[ 1 ] Corporate Branding in the Pharmaceutical Industry – An Investigation into how Important is Corporate Brand for the General Practitioners By Kalinka Markova De Montille, November 2005.
[ 2 ] Quality Awareness about Indian Brands – Modeling the Consumer Behavior & Growth Path for Indian Brands By Samit Khanna and Puneet Sharma
[ 3 ] The 2007 Brand Marketers Report, Interbrand’s Annual Survey on Brands and Branding
